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-0.09  /  -0.08%

110.36

NAV on 2019/03/25
NAV on 2019/03/22 110.4468
52 week high on 2018/03/26 113.7104
52 week low on 2019/01/02 107.3579
Total Expense Ratio on 2018/12/31 1.15
Total Expense Ratio (performance fee) on 2018/12/31 0
NAV Incl Dividends
1 month change 0.01% 0.01%
3 month change 1.04% 3.16%
6 month change 0.21% 4.31%
1 year change -2.94% 4.8%
5 year change -0.88% 6.77%
10 year change 0.06% 7.62%
Price data is updated once a day.
  • Sectoral allocations
Fixed Interest 59.44 5.42%
Gilts 818.54 74.61%
Liquid Assets 2.43 0.22%
Money Market 45.81 4.18%
Real Estate 170.83 15.57%
  • Top five holdings
U-SLPROPI 170.83 15.57%
U-SBKIMM 59.44 5.42%
MM-03MONTH 25.73 2.35%
MM-07MONTH 16.03 1.46%
MM-06MONTH 4.05 0.37%
  • Performance against peers
  • Fund data  
Management company:
STANLIB Collective Investments (RF) Limited
Formation date:
2004/04/29
ISIN code:
ZAE000048641
Short name:
U-SLFLEXI
Risk:
Unknown
Sector:
South African--Multi Asset--Income
Benchmark:
BEASSA All Bond 1 to 3 year split
Contact details

Email
contact@stanlib.com

Website
http://www.stanlib.com

Telephone
011-448-6000

  • Fund management  
Henk Viljoen
Henk started his career in 1984 as a bursary student at the marketing division of Telkom, moving to the treasury division after one year. Henk became an economist at Senbank in 1986, before rejoining the treasury environment in 1989 at Senbank. Henk joined Liberty Asset Management in 1990 and assumed responsibility for STANLIB's cash and fixed-interest teams in 2000. Henk is regarded as one of the best fixed-interest managers in the country due to his consistent performance in respect of STANLIB's Bond and Income Funds.
Victor Mphaphuli
Victor joined SCMB Treasury in 1996 as a trainee dealer in the foreign exchange markets and later moved to Nedcor Investment Bank as a capital markets dealer. In early 2001, he joined Libam's fixed interest team as a capital markets dealer and assistant to Henk Viljoen.


  • Fund manager's comment

STANLIB Flexible Income Fund - Sep 18

2019/01/03 00:00:00
Fund review
The size of the Fund decreased from R1.3bn to R1.2bn during the third quarter of the year, while the modified duration was largely unchanged at 2.2 years at the end of the quarter. The fund’s positioning in property was brought down from a 20% overweight to a 15% overweight as the property sector recovered slightly during the quarter. The overweight in the listed property sector has impacted the short term performance of the portfolio. The recent sell off in the property sector is expected to reverse, and as a result the Fund still maintains an overweight position.
Market overview
Emerging market currencies and assets continued to sell off in the third quarter amid a stronger US dollar environment as trade and geopolitical tensions heightened, monetary conditions continued to tighten and global inflation expectations accelerated. Risk aversion due to US sanctions on Turkey and Russia and the debt crisis in Argentina contributed to the rand weakening by 3% against the US dollar, with bonds following suit as foreign investors sold R16bn of South African government bonds in the quarter. The US Fed raised interest rates by 25bps in September as widely expected, and indicated that they are planning on raising rates once more this year and three more times in 2019 as growth remains robust and inflation continues to increase.
Local GDP surprised by contracting again in the second quarter, tipping the economy into a technical recession and sparking fears of a possible ratings downgrade by Moody’s on the 12th of October. Longer dated bonds sold off as a result, as markets were pricing in a higher probability of an increase in government bond issuance as tax revenue was likely to come under pressure. The spread between the 30 year maturity bond and the 10 year maturity bond increased by 10 basis points to end the quarter at 93 basis points, reflecting these risks. Headline Inflation increased from 4.4% to 4.9% in August due to higher fuel prices and higher VAT but core inflation remains subdued as the economic activity remains subdued. The Reserve Bank as a result left interest rates unchanged leaving the markets pricing in higher probabilities of an interest rate hike at their November meeting should the current negative environment persist.
Looking ahead
The fourth quarter comes with a number of event risks with possible significant impact on returns. The three major rating agencies will give their rating updates on South Africa; with the Moody’s decision the most important one as a downgrade from them would result with major outflows due to South Africa being excluded from the World Government Bond Index. In September the government tabled measures to stimulate economic growth, details of which will be shared in the Medium Term Budget Policy Statement in late October. The stimulus package was well received by the markets and the details in the budget will be assessed for the impact on National Treasury’s debt consolidation plans. The Land Reform Committee is also expected to report back to parliament on its recommendations, which can have material impact on markets. Internationally, elections in Brazil in October and in the US in November will also be watched with keen interest as they can influence the risk environment.
The commentary gives the views of the portfolio manager at the time of writing. Any forecasts or commentary included in this document are not guaranteed to occur.
  • Fund focus and objective  
The portfolio seeks to maximise overall return, in the form of both income and capital growth. It will be consistent with the investment of funds in a flexible mix of predominantly non-equity securities.
3.1 The STANLIB Flexible Income Fund shall be a portfolio predominantly investing in non-equity securities.
3.2 The investment objective of the STANLIB Flexible Income Fund is to provide an efficient investment medium whereby investors can participate in a portfolio that will seek to provide the maximum overall return, in the form of both income and capital growth, which will be consistent with the investment of funds in a flexible mix of predominantly non-equity securities. The portfolio will be managed in compliance with the Prudential Investment Guidelines that are applicable to retirement funds from time to time.
3.3 The STANLIB Flexible Income Fund will predominantly invest its assets in South African investment markets at all times and will be permitted to make investments in a flexible mix of non-equity securities, to the maximum permitted by the Act, and any other securities, which may be included in a portfolio in terms of the Act and relevant legislation, which are consistent with the portfolio's investment policy, and which will include but will not be limited to preference shares. The manager may from time to time invest in participatory interests or any other form of participation in portfolios of collective investment schemes or other similar collective investment schemes, that predominantly invest in non-equity securities, as the Act may allow from time to time. Where the aforementioned schemes are operated in territories other than South Africa, participatory interests or any other form of participation in portfolios of these schemes will be included in the portfolio only where the regulatory environment is to the satisfaction of the manager and the trustee and of sufficient standard to provide investor protection at least equal to that in South Africa.
3.4 Nothing contained in this supplemental deed shall preclude the manager from varying the ratios of securities and non-equity securities, to best position the portfolio to achieve its objective in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange recognised in terms of the Act and from retaining cash or placing cash on deposit in terms of the deed and any supplemental deeds thereto.
3.5 The STANLIB Flexible Income Fund may from time to time invest in financial instruments, in accordance with the provisions of the Act, in order to achieve the portfolio's investment objective.
3.6 The STANLIB Flexible Income Fund will further be permitted to invest its assets in foreign investment markets, within the implied limitations of the portfolio's industry association portfolio classification, in a flexible mix of non-equity securities, to the maximum permitted by the Act, and any other securities which are consistent with the portfolio's investment policy, which will include but will not be limited to preference shares, and which may be included in a portfolio in terms of the Act and relevant legislation.
3.7 For the purpose of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager may, once a portfolio has been closed, open that portfolio again to new investors on a date determined by the manager.
3.8 The trustee shall ensure that the investment policy set out in this supplemental deed is carried out.
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